Singapore’s CH Offshore faces being delisted from the Singapore Exchange after posting three consecutive years of financial losses.
The company confirmed in a regulatory filing that it had been placed on the SGX Regulation’s (SGX RegCo) watch list on 6 June 2023.
If the company does meet the relevant requirements to exit the SGX watchlist within 36 months, it may be delisted or have its shares suspended with a view to a delisting.
CH Offshore said it will have to take active steps to restore its financial health and meet the requirements of SGX Listing Rule 1314(1).
Rule 1314(1) of the listing manual states that an issuer may apply for its removal from the watchlist if it records consolidated pre-tax profit for the most recently completed financial year and has an average daily market capitalisation of SGD 40m ($29.8m) or more over the last 6 months.
“The company wishes to notify all its stakeholders that the group’s business shall continue as usual and that its shares will also continue in the ordinary course of trading, unless a trading halt or suspension is effected in accordance with the SGX Listing Rules,” CH Offshore said.
In its results statement in February 2023, the company said that although the outlook for the oil and gas market continued to show signs of improvement, the sector faced market uncertainties and volatility as well as inflationary pressures, geopolitical tensions and the threat of recession.
Other maritime-related companies making the latest SGX RegCo watchlist include Beng Kuang Marine and Jasper Investments.
Beng Kuang Marine recently announced that it was selling part of its Batam shipyard in Indonesia to focus on more high growth opportunities in the maritime sector.
It is selling the property, which is said to have remained underutilised since 2014 due to the downturn in the offshore oil and gas sector, to US-listed Oil States Industries for SGD 8.64m.
In late February 2023, Beng Kuang Group reported a 71% year-on-year increase in its interim net loss to SGD 23.8m despite revenue increasing by over 18% to SGD 30.1m.
The SGX has 50 maritime-related companies listed on the exchange with a total market valuation of around SGD 22bn, according to a recent presentation.
